Google's efforts to increase sales to big business may get a boost as French technology consultancy Capgemini, whose major customers include Eli Lilly & Co. and PricewaterhouseCoopers, plans to recommend the Internet search company's on-line office software to its corporate clients. The partnership is the first time a top a major technology consulting firm has endorsed Google's software package, though Capgemini also will continue to support software from vendors such as Microsoft and IBM. Google has made inroads with small businesses given the cheap $50 annual cost for the package, but has had a more difficult time penetrating larger corporations. The package includes the Gmail e-mail service and word processor, spreadsheet and Business presentation software. By using software as a service, customers don't have to maintain and install systems because it is available on the Internet. Capgemini has influence over the software used on more than a million PCs worldwide. Citing Gartner research, Capgemini said the market for software as a service could grow 25% by 2010. Software licenses, at $70M, accounted for less than 1% of Google's total revenue in the first half.
Sources: AP, Bloomberg, Reuters
Commentary: Snobs: Google Losing Its Indie Sex Appeal • Google Apps : Microsoft Has Good Reason to Worry • Google Getting Serious About Taking On Microsoft In Enterprise
Stocks/ETFs to watch: GOOG. Competitors: YHOO, MSFT. ETFs: HHH, FDN
Earnings call transcript: Google Q2 2007
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